Abstract
Forward transaction has been appearing in Vietnam since 2000. Specific to coffee product, forward operation through commercial banks has been known since 2004 and officially traded on BuonMaThuot Coffee Exchange Center (BCEC) in 2011. So far, the volume as well as value of coffee forward transaction in Vietnam is still very limited. By observing and analyzing the actual transaction data in Vietnam, the authors pointed out four main reasons causing to this poor situation, including: (i) There still exists some shortcomings in Vietnamese law system for Commodity Exchange; (ii) The transaction on VNX and BCEC does not bring the benefits to the participants or speculation opportunities to investors; (iii) Financial institutions have not demonstrated their active roles in the market and participated in the establishment of a reliable clearing system on the Commodity Exchange; (iv) Supportive infrastructure is not good enough in Vietnam. In addition, the authors proposed some implications in order to develop forward operation for coffee products as well agricultural products generally in Vietnam.
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